Supply Management: What is it?

[ This is part one of a two part article - see our next issue for part 2 ]

Canada’s egg farmers are dedicated to ensuring they provide fresh, high quality eggs for you and your family. In order to ensure a stable supply throughout the year, a form of agricultural marketing known as supply management was developed.

Supply management is uniquely Canadian. Five agricultural commodities are supply – managed: eggs, milk, turkey, chicken and broiler hatching eggs. Federal and provincial laws allow farmers to work together to determine how much of each commodity needs to be produced in order to meet consumer demand. That results in a stable supply and fair prices.

The demand side of the equation is constantly changing-factors such as the state of the economy, time of year and promotions can impact the amount of eggs needed each year.

Supply management allows farmers to make a fair return, as farm gate prices are collectively negotiated. Young egg, dairy and poultry farmers see a bright future for their farm families in rural Canada. They want to continue farming, helping to support the economy of communities here on PEI and across Canada. In communities from east to west, farmers avail themselves of a host of services within their local community. This rural heritage is the legacy we will leave our children.

Egg Farmers of Canada
Egg Farmers of Canada (EFC), formerly the Canadian Egg Marketing Agency, is the national organization which forecasts demand, promotes eggs and develops national standards for egg farming. It was established under the Farm Products Agencies Act. There are 11 provincial and territorial egg organizations collaborating on a daily basis with EFC.

Every year, more than 550 million DOZEN eggs are produced in Canada; 3.2 million dozen here on PEI. Egg Farmers of Canada continuously projects how many eggs will be required in the upcoming year and adjust the national allocation accordingly. This allocation projects how many laying hens are needed to produce the eggs required. The allocation, or quota order, must be approved by the Farm Products Council of Canada, to make sure our projections are sound and serving the public interest.

EFC divides the national allocation among provincial and territorial egg marketing organizations, which in turn divide their allocations within their province/territory. Regulated egg farmers have production quotas which must be purchased when they first start out in egg farming. Each province does have a maximum number of hens that can be held without quota or by un-registered producers.

Supply management ensures that egg producers receive their cost of production and consumers are provided with fresh, high quality local eggs at reasonable prices.